help on what debt to pay

[Anonymous]

Hey folks,

I have a chance to pay off some debt and wondered what would help my scores.

I do not have a credit card balance so that is out.

I have a truck payment that has two more years on it.
student loans that have about three more years on them.
A HELOC loan that is 90% UTI.

I have enough to pay off the truck and student loan or enough to knock the HELOC down to about 60% UTI.

What do you think?

Message Edited by angrykid001 on 04-14-2007 04:29 PM

[Anonymous]

Well it appears a HELOC will report as a revolving credit so I should pay that down.

[Anonymous]

Well depend on what is going to give you better interest.  Maybe pay off the truck then add the amount you were making in Truck payments to the HELOC.  You'd save two ways by being able to reduce your insurance to liability only as well as dumping the Truck payment.

Student loans would be the last option for me. Whats left over throw at the HELOC because you never want to secure unsecured debt with your home.

Message Edited by Brammy on 04-14-2007 09:07 PM

[Anonymous]

Definately the truck first.  It's great not owing money on a depreciating asset plus of course the better insurance rate.

Pay down the HELOC as much as you can so that if anything did happen your home would be at a much lesser risk.

What's left = student loan.

[Anonymous]

Student loan is the lowest priority, assuming it's got the lowest interest rate of all your debt.

[Anonymous]

Thanks so much for the input folks. My relocation has initiated and three lenders pulled my credit report. I recieved numbers ranging from 766 to 780 so I think I am in good shape.

[Anonymous]

I'm curious what avenue are you considering taking?